Inflation eased a bit last month, but President Trump's trade war is raising concerns about the outlook for inflation.
Consumer prices last month rose 2.8% from a year ago, slower than the 3% annual gain seen in January.
Meanwhile, on a monthly basis, consumer prices rose 0.2% from January, below the 0.5% increase seen in the previous month 鈥� and lower than what economists had expected.
Falling gasoline prices last month helped to keep the overall inflation rate in check. Grocery prices were also flat, although egg prices continued to climb at a double-digit pace. Egg prices have been soaring as avian flu weighs on the nation's flock of laying hens.
The cooling inflation rate should come as a relief to watchdogs at the Federal Reserve. Nevertheless, the central bank is expected to hold interest rates steady when policymakers meet next week.
The inflation data is coming out on the same day that Trump's tariffs on steel and aluminum products are kicking in 鈥� with the president threatening more tariffs.
Those tariffs could make inflation worse 鈥� just at a time when the battle against high prices is far from over. And the economy could be further hit after trading partners like the European Union retaliate with their own tariffs.
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